|
|
| |
Types of Life Insurance |
Term Insurance
Term assurance provides life insurance coverage for a specified term of years in exchange for a specified premium. These policies do not have accumulate cash value - CV. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else.
There are three key factors to be considered in term insurance:
1.Face amount (Coverage Amount or death benefit),
2.Premium to be paid (cost of Insurance- COI),
3.Term of coverage for example Term 5/10/15/20/25/30/35/40.
Permanent Life Insurance
Permanent life insurance is life insurance that remains in force for life of insured, unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application. Permanent insurance builds a cash value. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value.
The Four basic types of permanent insurance are whole life, universal life, limited pay and Term-100 (with no cash value).
Universal life coverage
Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for greater growth of cash values. Universal life insurance addresses the perceived disadvantages of whole life – namely that premiums and death benefit are fixed. With universal life, both the premiums and death benefit are flexible. Except with regards to guaranteed death benefit universal life, this flexibility comes at a price: reduced guarantees.
Whole life coverage
Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Also, the cash values are generally kept by the insurance company at the time of death, the death benefit only to the beneficiaries. Riders are available that can allow one to increase the death benefit by paying additional premium.
Limited-pay
Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.
T-100 or Term 100 are pure Life Insurance with level premium till age 100; however they have no cash value in this policy.
If you have further Question, fell free to contact Canada Insurance Plan
|
| |
| Yes, I want my FREE, No Obligation Quote |
| |
| Name: * |
|
| Age: * |
|
| Gender: * |
Male
Female
|
| Smoker Status: * |
Smoker
Non Smoker
|
| Health Status: * |
Poor
Average
Good
Excellent
|
| Email: * |
|
| Phone: * |
|
| Postal Code: |
|
| Coverage Amount : |
|
| Plan: |
|
Medical Health Conditions/
Medications: |
|
|
|
|
|
|